2. Human Capital Planning Framework
Aligning Human Capital with Business Strategy
Vision, Mission, Values and Business Landscape
Corporate Business Strategy
Business Unit Strategies
Business Unit Business Unit Business Unit Business Unit
One Two Three Four
HC Planning – Building Capability to Execute Business Strategy
Talent Talent Learning & Organizational Total
Planning Acquisition Development Effectiveness Rewards
•Talent Reviews Strategic HC Initiatives
•Modeling
Manage talent segments to Identify and address the HR implications of corporate
support the execution of and business unit strategies to maximize the impact
business strategy of human capital on business performance
1
3. Enabling Strategy Execution: Manage Talent Segments
Talent Segmentation
Value Creation
High Low
Critical Specialized Essential Contingent
Talent Talent Workforce Workforce
Highly skilled people Internal / external Employees with Lower skilled contract
with the greatest ‘experts’ with unique ‘replaceable’ skills workers needed to fill
impact on longer- skills that are difficult focused on executing specific, temporary
core business staffing needs
term value creation to develop or replace
processes
Drive strategy execution and yield the greatest return by aligning HR
investments with the value created by each talent segment
2
4. Enabling Strategy Execution: Building Capability
Identifying and Addressing Human Resource Issues
• Who is the next generation of leaders? • Do we have the right employee brand to
• Do we have the depth and breadth of talent to attract critical talent?
achieve our strategic goals? • Does our on-boarding process strengthen
• What is the impact of changes in the external employee engagement?
labor market on the availability of critical skills? Talent • How can we build a strong candidate pool
Planning of specialized talent?
Total Talent
• Is total rewards aligned with Rewards Acquisition
business strategy? Business
• How can we keep our critical Strategy
talent segments fully engaged?
• What rewards do our critical talent
segments value? Organizational Learning &
Effectiveness Development
• How can we create a culture of ‘high performance’? • What competencies are required to meet
• Does our performance management process drive future business challenges?
strategic goal achievement? • Should we ‘buy’ or ‘build’ critical skills?
• Do we have the agility needed to capitalize on a • Given our size, structure and resources
rapidly changing business landscape? what development opportunities will we
be able to offer high potentials?
3
5. Enabling Strategy Execution: Building Capability
Map Enablers (Competencies / HR Capabilities) to Business Strategy
Organic Growth Strategy
High Potential enablers for growth:1
1 1. Customer Focus (new domestic markets)
2 2. Availability of core talent (within new
markets)
3. Cultural Competence (new global markets)
Current Capability
5
4. Innovation (new products / services)
5. Organizational Agility (responsiveness to a
rapidly changing business landscape)
3 6 6. Leadership (depth and breadth needed to
execute strategy)
4
7. Acquisitions (vehicle for entry into new
markets)
7
Low
Build capability by addressing ’high
Low High impact’ – ‘low capability’ enablers
Strategic Value
1For illustrative purposes only
4
6. Human Capital Strategies
Partnering with organizations in creating human resource
strategy and talent management solutions to build the
capability of human capital to achieve business goals
Allen Klein
Principal Consultant
773.267.0154
aklein@hcschicago.com
www.hcschicago.com